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  SUB: FINANCIAL 

ACCOUNTING

ANALYSIS OF 

ANNUAL REPORT OF 

BHARTI AIRTEL 

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PROJECT DONE BY 

Shubhangi Shuryavanshi (82)

Mayur Naliapara (49)Milan Pateliya (53)

Pritima Singh (77)

Avinash Naik (48)Rupesh Vora (90)

Amit Sanil (67)

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CORPORATE GOVERNANCE 

OF BHARTI AIRTEL 

believes in the principles of Corporate Governance

Bharti bench marks, evaluates and updates its governance

principles and guidelines from time to time in order tomaintain transparency and trustworthiness.

Company Policies are inline with SEBI guidelines

Level 1 CRISIL Rating between 2003 to 2006

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CORPORATE GOVERNANCE 

OF BHARTI AIRTEL CONTuCorporate Governance practice at Bharti Airtel aim at the

following:

Complete and timely disclosure of accounting statements

Adopted a policy of rotation of auditors and also a code of 

conduct for directors and senior management

Well defined corporate structure and responsibilities

attached to it

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BALANCE SHEET OF BHARTI

AIRTEL  Mar ' 10 Cr. Mar ' 09 Cr.

Sources of funds

Owner's fund

Equity share capital 1,898.77 1,898.24Share application money 186.09 116.22

Preference share capital - -

Reserves & surplus 34,652.32 25,627.38

Loan funds

Secured loans 39.43 51.73

Unsecured loans 4,999.49 7,661.92

Total 41,776.1 35,355.48

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BALANCE SHEET CONTu.

Uses of funds

Fixed assets

Gross block , 1 .53 3 , 66. 0

Less : accumulated de reciation 16,1 .56 1 , 53.3

Net block ,0 .9 5,011. 3Ca ital work-in- rogress 1,59 . ,566.6

Investments 15, 3.19 11, . 6

Net current assets

Current assets, loans & advances 9,225.08 10,466.63

Inventory . 6 .15

Sundry Debtors ,10 .9 ,550.05Cas and Bank Balances 16. , 51.60

Ot er Current Assets 66.3 119. 1

Loans and Advances 6, 09. 5 , 1. 9

Less : current liabilities & rovisions 12,838.75 13,752.38

Current Liabilities 1 ,1 0 13,11

Provisions 65 . 5 63 . 0

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BALANCE SHEET CONTu.

Total net current assets -3,613.6 -3, 5. 5

Miscellaneous ex enses not written - 0.0

Total 1, 9.35 35,35 .61

Notes:

Book value of un uoted investments 11,619.95 9, 9 .56

Market value of uoted investments , 16.6 1, . 6

Contingent liabilities 3,9 1.50 ,10 . 5

Number of e uity s aresoutstanding (Lacs) 3 9 5.3 1 9 .

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RATIO COMPARISON OF IDEA AND

BHARTI AIRTEL 

Ratio AIRTEL IDEA

t rofit Ratio 2 .47 8.8

O rating Ratio 28. 5 .4

R turn on ca ital inv st d 30 .1

Working ca ital turnov r ratio - 84.53 -7,355.37

Curr nt Ratio 1:1.3 1:1.03

D bt E uity Ratio 0.13:1 0.57:1

Int r st cov rag Ratio 37.77 1.11

R turn on uity 2 10

Earning r s ar 24.82 3.1

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ANALYSIS OF US AND INDIAN GAAP

(GENERALLY ACCEPTED

ACCOUNTING PRINCIPLES

INDIAN GAAP US GAAP

Cash Flow Statement: Com ulsory

only for t e listed com anies wit t e

turnover more t an 50 Crs

Cash Flow Statement: Com ulsory to

maintain it for 3 years i.e. 1 current

and receding years even if t ey are

not listed

e reciation: e reciationercentage can not go lower t an t e

s ecified y t e ovt. ut can e

ig er if disclosed in t e ooks of 

accounts

e reciation: o ercentage iss ecified.

It s ould e realistic and must e

ased on t e estimation of t e life of 

t e asset.

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ANALYSIS OF US AND INDIAN GAAP

(GENERALLY ACCEPTED

ACCOUNTING PRINCIPLES

INDIAN GAAP US GAAP

Format of the financial statement: It

as to be resented in 1 s ecific

format mentioned in t e com anies

Act, 1956

Format of the financial statement:

T ere is no s ecific format. As long as

t ey com ly wit t e US GAAP

disclosure re uirement

Exp. During construction period:Needs to be accumulated and t an

allocated to t e assets w en t e

roject is com leted

Exp. During construction period:Direct Ex . Can be added to t e assets

at t e end but indirect ex . Are

c arged to revenue.

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